The leading cryptocurrency Bitcoin has been in a corrective phase since it reached its all-time high of $111,968 on May 22. The leading coin dropped below the key support level of $105,000 to be trading at $104,536 at the time of publication, reflecting selling pressure.
However, on-chain data suggests a potential recovery above this critical support level, with a possible retest of BTC's all-time high on the horizon. This analysis details the key insights.
BTC Liquidity Clusters Signal Increase Towards $109,000
An assessment of the BTC liquidation heat map shows a notable concentration of liquidity around the price zone of $109,933.
Liquidation heat maps identify price levels where large clusters of leveraged positions are likely to be liquidated. These maps highlight areas of high liquidity, often color-coded to show intensity, with brighter zones (yellow) representing higher potential for liquidation.
Generally, these cluster zones act like magnets for price action, as the market tends to move towards these areas to trigger liquidations and open new positions.
Therefore, for BTC, the convergence of a high liquidity volume at the price level of $109,933 indicates strong trader interest in buying or closing short positions at this price. This creates room for an increase towards the mark of $109,000.
